Asia Weekly PVC Report (Week 13, 21-25 Mar 2016)

Healthy demand fueled firmer expectation

In Asia, the PVC market remained largely stable this week, as most sellers have concluded their April cargoes and in the process of completing logistics procedure. Some players have started to express their expectation for May shipment and mostly looking forwards a continued firming trend.

In India, demand has been healthy as the peak season for PVC application might prolong till June, which strongly support the whole regional market. A converter said, “Demand for pipe in India is very healthy now and we expect this trend to sustain in the coming month. Supply is tight and therefore we think sellers would attempt further price hike in the near term.”

In China, meanwhile buying interest was rather disappointed to many local sellers, however tight supply provides a support for CNY50-100/t ($8-16/t) hike on domestic cargoes compared to last week. A producer commented, “We are currently offering discounts on deals and free delivery for customers East China, yet many buyers are not showing interest in replenish material. Export business yield better profit margins and we think prices might see higher level in the coming month given good demand in India.”

In Southeast Asia, most buyers claimed to have sufficient inventory by now and that they are not having the urge to make additional purchases in the coming days. A converter in Malaysia commented, “Our end product demand is slower than expectation recently hence we are not planning to take any cargoes for April shipment. We received offers for Thai material at $810/t CIF term and we are expecting sellers are holding firm stance in the near term with the support of high upstream costs and good demand in India”

A summary of import PVC prices to the region is shown in the following table:

For detail Daily Prices in China and Southeast Asia market, kindly visit our website at www.commoplast.com. Please contact our representatives at commoplastinfo@gmail.com for log in assistance.